UNENFORCEABLE LISTINGS AND CONTRACTS

Tearing up the contract

When an agent puts in valuable time listing and showing a client’s property, the last thing they want to hear after going to contract is that their Contract or Listing Agreement is unenforceable. On occasion, we do receive Contracts that are unenforceable due to improper preparation and/or execution.

All owners of record should be named on and must execute both the listing agreement and contract. In Florida, one spouse cannot contract to list or to sell homestead (primary residence) or jointly titled marital property without the joinder of the other, unless there is a valid Power of Attorney authorizing them to do so.

Someone having a Power of Attorney who is not the record owner should NOT be shown as the “seller” on the Contract or listing agreement. The “seller” is the record title owner to the property. If the person executing the listing agreement or contract is someone other than the record title owner, not only must there be a valid Power of Attorney authorizing them to do so, but the Attorney in Fact must execute the document by signing the seller’s name and then adding the words “By …(name), his/her Attorney in Fact”.

If a someone tells you that they have authority to list and sell property where the record title owner is deceased, property documentation should be obtained verifying that authority.

Please fee; free call us when you encounter these situations so that we may guide you.

About vineyardtitle

I am Florida licensed title insurance agent who has been in business since March of 2006. With over 25 years legal experience and over 15 years in the title insurance industry I have learned to overcome just about every type of situation that might arise in a real estate transaction. As a family owned and operated company, we pride ourselves on unparalleled integrity and customer service.
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